My wife got me the latest generation Kindle Wifi for my birthday a bit early. I have been reading on an iPod touch or my iPhone for the last ~2 years for almost 90% of the novels and books that I read. I loved the convenience of being able to buy books online, not wait for shipping and not have to hold up a book and flip pages. After a while though I had grown tired of the fatigue caused by extended 'phone reading' and was envious of my wife's Kindle.
Once the lowered the price to $139 it was too hard to pass up. I decided the 3G version really didn't do much for me since the device will remain at home 99% of the time and if/when I travel most hotels have wifi. Plus I'll have a load of books on the device already.
So far I really really love it. I read way faster than on my phone and can read for longer at a time. It turns pages really quickly, the screen is really contrasty and looks good at any angle just like a piece of paper. It weighs almost nothing and is really comfortable to hold and use.
UPDATE Jan 2013: I've since upgraded to the Kindle Paperwhite and will be posting a pic and review shortly